Federalizing an import from overseas into USA | FerrariChat

Federalizing an import from overseas into USA

Discussion in '458 Italia/488/F8' started by KY _Soldier, Feb 13, 2016.

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  1. KY _Soldier

    KY _Soldier Formula Junior

    Oct 13, 2008
    564
    Louisville KY
    Full Name:
    Eric Rahman
    Has anyone had experience federalizing a Ferrari from Europe/Middle East into the USA? I am trying to assess the logistics of such a move. I've seen some fantastic cars in europe and the middle east and may have some latitude due to my reserve status with some overseas training orders to pick one up and bring it back for a healthy discount. I think I would have to save 20%+ in order to make it worth doing, but not sure if some cars are already import ready to US specs (minus maybe some DOT turn signals) and it would become a customs/logistics risk/reward calculation.

    I have been on the fence about a 458 or FF, and may plan now to make a move before spring hits and the prices climb a little here.

    Any experience/help is appreciated, esp anyone in the service or expat who can assess all aspects. I know it isn't totally simple or everyone would be doing it.
     
  2. Redneck Slim

    Redneck Slim Formula 3
    Silver Subscribed

    Mar 10, 2011
    1,440
    Palo Alto,CA,USA
    Full Name:
    Walt Kimball
    You are walking into quicksand,especially with the current USA administration. Be very careful.
     
  3. DXB599

    DXB599 Formula Junior
    Silver Subscribed

    #3 DXB599, Feb 13, 2016
    Last edited: Feb 13, 2016
    I've looked at this extensively given that I've spent the past 8 years in the Middle East and regularly see amazing deals (versus US prices) on super cars. I think that I bought my Ferrari for around a 40% discount to US prices. The cost of conversion is just too high to make the numbers work. For my 599, I was quoted a number of about $70K for the conversion from a very reputable firm. When you add transport, marine insurance and also the fact that a gray market car will sell in the US at a discount to a US model, it normally makes no financial sense.

    There is an interesting program that allows non-resident US citizens (and others) to bring their non-conforming car into the US for a one year period, but it cannot be sold and then needs to be exported after a year. I'm considering this to bring my car for a year.

    Once a car becomes at least 25 years old, then it is easy, but normally at that point, it is no longer possible to engage in arbitrage as the "all in" values typically converge.
     
  4. KY _Soldier

    KY _Soldier Formula Junior

    Oct 13, 2008
    564
    Louisville KY
    Full Name:
    Eric Rahman
    #4 KY _Soldier, Feb 13, 2016
    Last edited: Feb 13, 2016
    Thanks for the response. What does the $70k quote entail? You would think that for the most part a vehicle of today's caliber is fairly universal across the world. Is it an emissions thing? To that end, who/where in this country does the inspection to ensure it is at US standards? Heck the standards for my state vs say MA or CA are different in that regard. I think I have a fairly lax state when it comes to that. What about a US versioned car that happens to be overseas now. Does that happen much? As for transport, I may have that covered via the military. I posted what I found from my state below. I know some folks with grey market 911's here that they brought from Germany. One friend brought a GT3 RS with the euro spec windscreen in a container from Luxembourg and just got lucky that they didn't open it and inspect it lol.

    Vehicle Purchased Overseas
    Members of the military who are planning to bring a vehicle back to Kentucky from an overseas duty station will need to register their vehicle within 30 days of returning. You will need to submit:

    Application for Kentucky Certificate of Title/Registration (Form TC 96-182).
    The foreign title, certificate of origin, or foreign registration.
    A sheriff's vehicle inspection.
    Proof of Kentucky insurance.
    Payment for vehicle registration fees and taxes (see “Vehicle Registration Fees" below).

    Kentucky Vehicle Registration Fees
    Kentucky has fixed fees for registration and titling of your vehicle. You will also need to pay your usage tax based on a percentage of your vehicle price. Here is a general list of fees, but you will need to contact your county clerk's office to find out exactly what the costs will be.

    Title fee: $9.
    Speed title: $25 (available if you would like to get a title the next day).
    Transfer fee: $17.
    Yearly car registration fee: $21.
    Title lien statement fee: $22.
    Notary fee: Varies depending on county.
    Vehicle inspection fee: $5.
    Usage tax: 6% of the cost of the vehicle.

    Registering a Foreign Vehicle in KY
    Kentucky allows vehicles from other countries to be registered as long as they have the proper U.S. Customs forms HS-7 or 7501. The main countries that Kentucky registers are:

    Canada: Requires a Canadian vehicle registration.
    Germany: Requires a German title.
    Switzerland: Requires a Swiss car registration.
    If you have a vehicle from any other country, you will need to call (502) 564-1257 to find out what is needed for registration. All documents must be translated to English.

    All foreign vehicles over 25 years old or having a VIN starting with the number 1 will not require the U.S. Customs forms HS-7 or 7501.
     
  5. KY _Soldier

    KY _Soldier Formula Junior

    Oct 13, 2008
    564
    Louisville KY
    Full Name:
    Eric Rahman
    Found this as well from cbp.gov:

    Military and civilian employees of the U.S. government returning at the end of an assignment to extended duty outside the CBP territory of the U.S. may include a conforming vehicle among their duty-free personal and household effects. The auto must have been purchased abroad and be in its owner's possession prior to departure. Generally, extended duty is 140 days or more. Navy personnel serving aboard a U.S. naval vessel or a supporting naval vessel from its departure from the U.S. to its return after an intended overseas deployment of 120 days or more are entitled to the extended-duty exemption. Conforming vehicles imported under the duty-free exemption are dutiable if sold within one year of importation. Duty must be paid at the most convenient CBP office before the sale is completed. Conforming vehicles so imported may remain in the U.S. indefinitely once a formal entry is made for EPA purposes.

    This helps with the 2.5% customs tax
     
  6. DXB599

    DXB599 Formula Junior
    Silver Subscribed

    #6 DXB599, Feb 14, 2016
    Last edited: Feb 14, 2016
    Check the 599 section and there was a thread regarding this exact topic and what is involved with Federalizing a non-US car. It's US Customs, EPA and DOT issues and not state specific requirements you would deal with unless you are in the Peoples Republic of California.

    30 years ago it was easy and just involved changing headlights, tail lights, side marker lights, bumpers, and side door impact beams. Now it is a major undertaking. Also, I seem to recall that if a particular model (like a 458) is already available as a US version, then your application can be denied because there is a US alternative of the same model.

    A US spec car that is overseas and then re-imported is a very simple procedure. I seriously doubt you will find a newer US spec Ferrari at a good price that is overseas. I've found a few older ones and some US Spec MB's, BMW's and Bentley's in my area, but not much of a difference versus their US value, so not worth the effort.
     
  7. Adamas

    Adamas F1 World Champ
    Rossa Subscribed

    Jan 13, 2012
    11,075
    Out of town
    Full Name:
    Mike
    Call JK technologies in Hampden (Baltimore), Maryland. They've converted a number of Euro-spec cars for me over the years, and are probably the country's foremost RI and converters. Ask for Lous or Jonathan.
    Good luck.

    Best

    Mike

    P.S. Thanks for your service
     
  8. Mark Blaizes

    Mark Blaizes Rookie

    May 27, 2018
    3
    Miami
    Hi Mike,
    How much does it cost to modify a Ferrari to US specs with JK?
    Thanks.
    Mark
     

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